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The associations agree that European public equity markets must provide better opportunities for companies to finance themselves and that the economic recovery and long-term sustainable development of Europe depends on realising the full potential of public capital markets to finance companies in Europe.
Especially in the context of the expected reduction in bank credit, the associations believe that there is a need for concerted action to help position the capital markets as a key source of economic growth in Europe. The Task Force will aim to present its first findings to the new Commission and Parliament by November 2014. It will contribute to the legislative planning for long-term investment, a debate begun by last year’s Commission Green Paper. The Task Force will also look at the continued funding of companies via capital markets in a broad sense, i.e. not only at the initial IPO stage but also at the other financial instruments available to companies (such as public debt) that can meet their financing needs.
The associations will provide intellectual support to the Task Force, which will be composed of corporate representatives and independent experts from the different parts of the ecosystem involved in listing companies. The associations will seek to ensure a balance of both expertise and geographic location in the Task Force. An IPO Roundtable will be organised in Zürich on June 18, 2014 at which preliminary findings of the Task Force will be discussed publicly.
Finally, the associations will seek to learn from, other praiseworthy industry initiatives, such as the IPO Task Force and the Equity Capital Formation Task Force in the US.
Judith Hardt, Director General of FESE, said: “IPOs are critical to economic growth. When dynamic companies access public capital markets, they can grow independently – and thereby create high quality jobs, spread wealth, boost local innovation and intellectual property, and improve the safety and diversification of investment. Exchanges play a key role as established venues of channelling financing for growth. Europe’s exchanges are providing companies with a full range of choices and services to help them access markets and are dedicated to making their markets continuously deeper and more relevant for all companies and investors.”
AMF launches an IPO working group
With its strategic plan seeks of keeping abreast with changes in the financing of economic activity and involving stakeholders in making Paris a dynamic financial marketplace in mind, a working group has been set up by AMF to examine the prevailing regulatory environment in France.
Regular dialogue between the AMF and intermediaries on the practical issues raised by recent initial public offerings (IPOs) has drawn attention to four main discussion areas, which have been adopted by the AMF Board:
The work will be carried out mindful of the financial industry’s concerns about the scheduling constraints involved in an IPO timetable. The working group is chaired by Monique Cohen and Jean Pierre Hellebuyck, both members of the AMF Board. Its members are representative of banks, advisers, lawyers, institutional investors, IPO decision-makers, company and individual investors’ representatives. The findings and recommendations will be put out to public consultation in autumn 2014.
Since the 2000s the regulatory framework for IPOs in France has been amended regularly in response to various cycles. The following developments are particularly noteworthy: